The Co-op had said it had entered exclusive talks with Delancey and Landid about forming a joint-venture to bring the 20-acre development in Manchester city centre to a conclusion.

However, it today issued a statement saying that all parties had agreed to abandon the plans after "amicable" discussions over the past year.

The Co-op said it planned to continue to develop the scheme itself but that it remained open to finding future J-V partners.

A statement said: “As part of our continued commitment to Manchester, we see the NOMA development progressing in a way which reflects the values and principles of The Co-operative Group.

"Delancey and Landid understand and respect that view.

“Whilst we recognise the track record, undoubted talent and complementary expertise Delancey and Landid could have brought to the project, we have been unable to agree the priorities for the scheme.

“We always said that if we could not secure a partner on mutually acceptable terms, then we would continue to develop Manchester’s sustainable city centre district ourselves, and that is what we will now be doing, in the best interests of the Group and its members.

"We have a clear three-year plan to achieve that objective and are pressing ahead, with urgency, on that basis.

“We are not ruling out the possibility of working with one or more partners in the future, but in the meantime we are already engaged on delivering the next phases of this exciting development.

“The £800m NOMA development is unlike any other development in the UK, and we are confident that this regeneration of Manchester city centre will continue to flourish under our guidance.”